How to Buy Property in Krakow Legally and Safely

Thinking about investing in Krakow real estate? Poland welcomes foreign investors – but make one legal mistake, and your dream apartment could turn into a legal nightmare.

Here`s a simple, step-by-step guide to buying property in Krakow safely and efficiently.

1. Can Foreigners Buy Property in Poland?

Yes – and in most cases, it`s surprisingly simple.
Foreigners from the EU, EEA, or Switzerland can buy apartments and commercial spaces in Poland without any permits.
If you`re from outside the EU, you can still buy residential property (like a flat in Krakow), but buying land may require a special permit from the Ministry of Interior – unless you do it through a Polish company.

Pro Tip: Flats in apartment buildings usually do not require a permit – even for non-EU buyers.

2. The Legal Steps – How the Process Works

Here`s a simplified version of what your purchase process will look like:

Step 1: Find the Right Property

Work with a local agent who speaks English (or your language) and knows how to work with foreign buyers.
Ask about:

• Legal status of the property

• Ownership history

• Potential risks (shared ownership, debts, etc.)

Step 2: Sign a Reservation or Preliminary Agreement

You pay a small deposit (e.g. 1-2%) to take the property off the market while legal checks are done.

Step 3: Legal Due Diligence

A good agent or lawyer checks:

• Land and Mortgage Register (Księga Wieczysta)

• Zoning plans (for land)

• Any debts, court cases, inheritance issues

• Legal status of the building or development

Step 4: Final Purchase at the Notary

• A public notary (required by Polish law) drafts the sale agreement.

• You pay the remaining price.

• You receive a notarized copy and apply for ownership registration.

3. Can I Buy Remotely Without Coming to Poland?

Yes – you can buy fully remotely with a power of attorney (POA).
A lawyer or trusted agent in Poland can act on your behalf in front of the notary.

4. What Are the Costs and Taxes?

No income tax if you`re only buying, not selling (yet).

VAT (Value-Added Tax) in Real Estate – 8% or 23%? It depends.

In Poland, VAT applies only to new properties sold by a developer or a company. But the rate depends on the type and size of the property:

When is VAT 8%?

• Applies to residential units (apartments or houses)

• Total area is up to 150 m² for apartments or 300 m² for houses

• The property is bought directly from a developer or a business

• The building has a residential function

When is VAT 23%?

• Applies to:

  • Any residential unit exceeding 150 m²

  • Commercial properties (offices, retail, etc.)

  • Land plots (in most cases, unless exempt)

  • Some renovated properties treated as new in VAT terms

Important: VAT is usually included in the price shown by the developer. But it`s always good to confirm.

Example:
You buy a brand new 60 m² apartment from a developer – the price includes 8% VAT.
You buy a 170 m² penthouse – you`ll pay 8% VAT for the first 150 m², and 23% VAT for the remaining 20 m².

5. Biggest Legal Risks to Avoid

• Buying property without checking ownership (yes, it happens!)

• Trusting only the seller`s documents

• Not verifying debts or claims in the Land Register

• Buying from a developer without proper guarantees

• Not using a bilingual or international notary

6. Is It Safe to Invest in Krakow?

Very. Krakow is one of Poland`s most dynamic real estate markets – with stable prices, high rental demand (students, expats, companies), and strong capital appreciation over the last 10 years.

Conclusion: Buy Smart, Buy Safe

Buying property in Krakow as a foreigner is absolutely possible – and often a great investment. But don`t go in blind. Work with a local expert, do your legal checks, and don`t cut corners.

Need help with your first property in Krakow?
Contact Ekspert Nieruchomości Dariusz Winiarski – we help foreign investors navigate the Polish market safely and profitably.